10 Actionable Tips To Reduce Employee Turnover In 2023
American business leader Doug Conant once said, “To win in the marketplace, you must first win in the workplace." Today's changing work culture makes this quote more than true. The workplace issues like rising labor shortages, recession, big resignations, and quiet quitting are reducing businesses' ROI more than ever in 2022. There seems to be no end in sight to employee turnover until 2023, and experts warn that organizations cannot afford to remain stagnant in the face of this turnover tsunami.
A CIPD report states that employee turnover is the percentage of employees who leave a company during a specific period. A comprehensive study by Work Institute found that more than 25% of US employees would switch employment within a year, costing employers an outstanding $600 billion. Therefore, companies – regardless of their size and industry must cherish their employees and find ways to keep those who excel at their jobs.
The longer an employee stays with your company, the more likely he or she is to develop within it and contribute to its success. When you can keep your best employees, you can build solid bonds with them and boost their engagement and output. Because of this, businesses must lower employee turnover.
Every HR and business leader should keep employee turnover at the top of their priority list, even though it varies by industry, region, and employment market. But how can they do that? Invest in employee-centric work culture.
The best office infrastructure in the world won't keep your employees happy if you don't invest in creating a flexible work environment. This blog post will provide 10 top-notch tips to minimize the employee turnover rate in your organization and foster a productive workplace.
What Is Employee Turnover? Why Do Employees Leave Their Jobs?
The employee turnover rate measures the number of employees who leave an organization during a given timeframe. Both employees who have resigned and those who have been let go by the company are included. Whatever the cause of turnover, employee absenteeism hurts a company's profit margins. However, subcategories, like those within departments or demographic groupings, are also subject to turnover.
There are many studies that evaluate employee turnover each year, but the causes of leaving are consistent regardless of the specifics. Most employees quit their jobs for higher pay, better benefits, professional advancement, better work-life balance, and management inefficiency. Employees staying too long in the same role, remuneration, and company culture can all be used to predict retention.
Now, let’s check out key reasons for employee turnover:
- Career development opportunities
- Lack of employee support
- Outdated technology
- Toxic work culture
- Poor employee experience
- Stress and burnout in the workplace
- Having bad feelings about the management
- Better job offers from another organization
- Unforeseen life/family event
- Lack of recognition
- Poor pay and compensation
Why Is It Important to Reduce Employee Turnover?
Undoubtedly lower employee turnover rate can have a significant impact on business ROI. It goes without saying that having adequate skilled employees are essential to achieving business goals and plans. Additionally, it's increasingly more work to find the best talent.
Once the best fit has been found, convincing him/her to join can be expensive and time-consuming. The hiring process is taking longer, and while most firms have raised salaries for paid positions, only 50% have done the same for hourly positions. These rising costs provide an additional incentive to decrease turnover.
Not every turnover is damaging. In every organization, some employees may not be an excellent fit for the role. At the same time, some others contribute little to the company's overall growth. It's a good thing when such employees quit like this.
However, the sudden loss of high-value personnel or employees becomes a problem. Now that you have a better understanding about employee turnover, let’s look at some of the killer strategies that can be used to reduce the employee turnover rates.
Tips To Reduce Employee Turnover At Your Organization
Is there anything you can do to retain your top talents for your company in light of all of this? Employee turnover can be minimized, and even tiny adjustments to the work-life balance, management relationships, salary, and general health can have a significant impact.
Here are some of the critical tips to remember for lowering turnover at work if you want to keep the best talents within your company and prevent them from leaving:
- Hire best-fit candidates
Poor hires can be partially attributed to recruiting. Recruiters must be up-forward and honest with candidates about the company's culture rather than just telling them what they think they want to hear. Report by Oracle NetSuite, around 50% of employees believe job titles do not accurately reflect actual job duties, and nearly a third of them quit within 90 days because they did not like their jobs.
Some businesses have increased their recruiting success rates by allowing peers in the position to make recruiting decisions. Additionally, organizations should use all available resources to get to know the prospect.
- Invest in a robust employee onboarding process
Getting the right candidate on board continues once they accept your offer. It's crucial to devote resources to properly orienting each new employee. A Gallup report states that around 12% of US employees strongly agree that their firm does an excellent onboarding experience for new hires.
An effective employee onboarding process helps to create the first and best impression of your organization among your newly onboarded employees. As a result, the employee onboarding process must be carefully planned, executed and analyzed to ensure its effectiveness. Many companies won't focus on offering a framework and a stable environment for their new hires, resulting in high turnover rates.
- Provide training and professional development opportunities
When the organization allows employees to expand their knowledge on the job through training sessions, presentations, or mentoring, etc., it can create a good impression of the employer.
On the other side, if the organization wants to provide more formal training and development, it can invest in microlearning methods that allow employees to learn anything, anywhere, on any device.
Employees will benefit from this in more ways than just their day-to-day tasks; it will also allow them to learn new skills that will further their careers. This indicates that people not only believe they are contributing to the role but also benefiting from it.
- Pay close attention
Being a good listener is one of the easiest ways to lower employee turnover. Despite how insignificant it may appear, actively hearing your staff and skilfully responding helps them feel valued. It is always essential for managers and team leaders to be accessible to their teammates and to respond to their needs.
To feel confident in the team they work on, regardless of whether your employees are willing to express their problems or offer fresh ideas, make sure the manager pay attention to what they have to say, appreciate where they are coming from, and respond appropriately.
- Clearly define your job expectation
It is usually desirable for an organization to be open and honest about its expectations with employees, especially those who are new. Employees who are unclear about their duties and tasks sometimes have problems. While discussing a position with an employee after hiring, never hide any information about their responsibilities.
Your employees are more likely to stay with you for a longer period if they know exactly what is expected of them and are clear about their position within the company.
- Encourage employee engagement
Creating a fulfilling work environment, treating people with respect, offering possibilities for promotion, and providing education and training are all ways to enhance workplace engagement.
We also advise putting in place a structured program for employee engagement. This can involve programs like employee volunteer events that foster camaraderie on your team. Additionally, you can set up a matching gifts program where you would match any charitable contributions made by your employees. Companies that significantly value learning and teamwork have employee engagement and retention rates that are 30–50% higher than those who don't.
- Arrange exit interviews
An organization must perform exit interviews when an employee decides to leave. Exit interviews, regardless of the reason for their departure, assist managers in identifying the main factors that could cause other employees to leave the organization.
Exit interviews let you learn about the employees' perspectives on the management's efficacy. When you evaluate exit interviews with an open mind, you can make the necessary management adjustments and retain the talent you already have.
- Promote open communication
It is important to maintain strong two-way communication with your staff in order to lower employee turnover. Make sure to ask them about their prior experience, the difficulties they are now experiencing, their recommendations for management improvement, and their influence on critical choices. This would give your staff a sense of inclusion and encourage them to stay for a while.
- Invest in a work culture that put employees’ mental health first
Undoubtedly, work culture is a broad term that generally refers to the common attitudes and ideas that characterize an organization and influence how employees feel at work. Employee engagement, employee experience, job satisfaction and employee productivity etc, are heavily influenced by an organization's overall work culture.
Thus, organizations should ensure that they offer an employee-centric work environment that prioritizes employees' physical and mental health. Organizations with employee-first culture encourage employees to express their concerns, believe in the company's core values, feel heard when they speak up, see growth opportunities, feel respected when they express their opinions, ensure a fair balance between work and life, and treat them fairly.
- Recognize and reward their successes
Recognizing and rewarding your top performers are another best way to reduce employee turnover rate. Sending an email to recognize your team or an individual contributor after finishing a challenging project or making a significant sale is a simple way to bring positive reviews into your firm.
A monthly or quarterly email that highlights the accomplishments of your team or organization should be sent to each employee. When an outstanding employee gets a “Thank You” card or a small gift from the employer, he or she feels more valued and would prefer to stay with your company for a long time.
When your business has high employee turnover, it hurts your ROI, impacts morale, and hinders business expansion and overall success. Therefore, it is critical to measure and keep track of your employee turnover rate.
Using the above tips, your organization can retain more employees, boost employee productivity and morale, and prevent revenue declines.